5 REITs Under $10 With HUGE Dividends

Just be careful: A few payouts are a little risky

Dynex Capital

Market Cap: $530 million
Dividend Yield: 11.5%June 11 Open: $9.78

Dynex Capital (NYSE:DX) is a risky REIT focused on leveraging up select mortgage-backed securities. Its specialty is short-duration agency residential and commercial assets in the U.S. — which sounds crazy, but it is designed simply to exploit interest rates and generate massive yields for dividend investors.

The company just shelled out 28 cents in April for its quarterly dividend — good for an annualized dividend yield of 11.5%! And what’s more, unlike some of the other picks on this list, Dynex Capital is moving its distributions in the right direction. The quarterly yield was just 27 cents last October before getting bumped up a penny in 2012. The icing on the cake is that DX shares have outperformed the market, too, with a 7% gain since New Year’s.